What Is Journal?: Double-Entry System of Accounting

What is Journal?
A journal is the book of original entry or prime entry in which transactions are recorded from
the books of accounts from the source documents. The transactions are recorded in a
chronological order i.e., as and when they take place. The transactions are recorded
following the double-entry system of accounting.
What is Journalizing?
The process of recording transactions in the book of original entry is known as Journalising.
The transactions are recorded in the form of a Journal entry. Recording is made following the
double-entry system of accounting. Thus, it records the two-fold effect of every transaction.
In the process of Journalising, the transaction is first analyzed in order to decide the account
to be debited or credited by ascertaining the rule of debit and credit. After this, entries are
recorded in books of accounts.
Journal Voucher in Tally.ERP 9

Journal voucher in Tally is an important voucher which is used to make all kind of adjustment
entries, credit purchases or sales, fixed assets purchase entries. In order to pass entries as
journal voucher we have to press “F7” shortcut key from accounting Voucher screen on
Gateway of Tally.
Which Segment of Tally.ERP 9 Contains Journal Vouchers?

In total there are 18 vouchers which we already see in Tally software, which is divided into
two parts:
 Accounting Vouchers
 Inventory Vouchers
And under Accounting Voucher there are already 10 nos. of ready to use Accounting
vouchers one among which is Journal voucher.
For what Purpose a Journal Voucher is Used in Tally

This voucher is used for all adjustment or due entries in tally software, or in other words entry
which is not made by other accounting vouchers are made by this voucher.
For Example: Credit purchases of fixed asset from creditor Rs. 50,000/-
Dr. Fixed Assets 50,000
Dr. CGST 4.500

Dr. SGST. 4,500
Cr. Creditor 59,000
For adjusting entries using journal voucher: The use of adjusting entry is to get accurate
financial result of a company.
For example: We use Journal vouchers in Tally for different scenarios listed below :
For journalising · Outstanding expenses are expenses which are due but not
Outstanding Expenses paid.
· Usually Rent bill/Electricity bill, newspaper subscription

fee, salary for the month of March is paid on April of the new
accounting year but as per going concern principle, expense
should be recorded in March itself so as to get an accurate
financial report or profit of a complete financial year.
· In this scenario, we use a journal entry at the end of the

march by debiting “rent expense” and crediting “expense
payable ledger”.
To record prepaid expense Pre- paid expenses are expenses paid in advance, the expense of
which is said to accrue over the months or e Periods or even
more than one financial year in many cases.
To recognize accrued Accrued income is an income earned but not received. It is
income a current asset for the company. This has to be recorded as
income for the financial year to which it pertains by passing a
journal entry.
Accrued Income Accrued income is an income received but not earned, which
means cash or consideration received in advance but not actually
earned.
For example a digital marketing company receives money

Rs.15,000 as advance for a particular project. But service was
not provided till the date of receipt.
In such case initially we debit cash account for the sum received
and credit liability account like Accrued income account and on
completion and delivery we debit the liability account and credit
the revenue account using a journal entry.
For Transfer entries Transfer entries are used to transfer funds from one account to
another.
For Example: 01-05-2018 ABC Ltd has two accounts in the

books of accounts as “ABC Ltd (Debtor)” hold a debit balance of
Rs 1000 and “ABC Ltd (Creditor)” hold a credit balance of Rs.
1000. To transfer funds from “ABC Ltd (Creditor)” to ABC Ltd
(Debtor) and to close both accounts, we need to pass a journal
entry by debiting ABC Ltd (Creditor) and crediting ABC Ltd
(Debtor).
For correcting wrong There may be situations where accounts are wrongly credited or
entries passed in the books debited, In such case to correct those entries we reverse the first
of accounts entry to transfer from wrong account to the correct account using
a journal entry in Tally.
Steps to Enter a Journal Entry in Tally

Journal entries in Tally are bye- passed through journal vouchers. The shortest route for
accessing journal voucher in accounting voucher menu is F7.
To enter a journal entry in Tally. ERP 9 follow these simple steps:
Step 1 From the gateway of Tally.ERP 9, Go to Accounting Voucher, Gateway

of Tally > Accounting Voucher.
Step 2 Now hit F7 shortcut key for journal voucher entry or click on F - 7 Journal
button on the right side of the screen.
Step 3 Change the date by pressing shortcut key F2 or click on date button at the
top right.
Step 4 Under the particulars column after By/Dr enter the ledger to be debited
and amount of the transaction. The users can enter multiple debit aspects
(ledger to be debited) one by one if needed.
Step 5 After entering Debit aspect, select To/Cr and select the ledger to be
credited and amount in the next field.
Step 6 Now in the narration field, enter the details of transactions and hit enter to
save the journal voucher.

What Is Journal?: Double-Entry System of Accounting

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What is Journal?

Journal Voucher in Tally.ERP 9

Which Segment of Tally.ERP 9 Contains Journal Vouchers?

For what Purpose a Journal Voucher is Used in Tally

Dr. Fixed Assets 50,000

Dr. CGST 4.500

Cr. Creditor 59,000

· Usually Rent bill/Electricity bill, newspaper subscription

· In this scenario, we use a journal entry at the end of the

For example a digital marketing company receives money

For Example: 01-05-2018 ABC Ltd has two accounts in the

Steps to Enter a Journal Entry in Tally

To enter a journal entry in Tally. ERP 9 follow these simple steps:

Step 1 From the gateway of Tally.ERP 9, Go to Accounting Voucher, Gateway

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